Julian, left, and Kenneth Smith of SolarSmith install an inverter, the last piece of a solar energy system, on a new house on Monday. Tax incentives are making solar and other alternatives more affordable. Hunter McRae/Savannah Morning NewsHunter McRae/Savannah Morning News

"I like the fact it seems to give you some independence," Woodcock said. "You're not dependent on that electric company."

Tax incentives made that independence more affordable. The installation, valued at about $25,000, is eligible for a federal tax credit of up to 30 percent of its cost and a state tax credit of another 35 percent. Its ultimate cost to the couple should be less than $9,000, said Julian Smith, whose company SolarSmith installed it.

Coastal Georgians are beginning to take advantage of these incentives, but many people remain unaware of them even as more incentives are being made available, Smith said.

Not just solar

The state clean energy tax credit was new last year, and 136 people statewide have taken advantage of it so far. The federal program dates to 2006. Late last year, however, it got sweeter when its previous cap of $2,000 was eliminated. The state program retains caps, but they're more generous ones.

The tax credits are offered for more than solar energy. Geothermal and wind systems qualify, as do some energy conservation measures such as insulation and energy-efficient windows.

Charles Davis, president of The Earth Comfort Company, installs geothermal systems, which rely on the constant underground temperature of the Earth to heat and cool buildings.

The average system costs about $27,000. State and federal tax credits eliminate about $10,000 of that amount. The tax credits basically cover the costs of the wells needed in a geothermal system, Davis said.

"The tax credits erase the difference between geothermal and a high-efficiency air source system," Davis said.

Customer Ed Hoffman, who just had a geothermal system installed in his Parkside house, concurs.

"We priced out a typical air-to-air unit and with the tax credits geothermal was the same price," he said. "The tax credit really made a big difference to us." As an added bonus, he and his wife received a $500 check from Georgia Power for converting their home to all-electric.

Payback is heaven

Solar and other energy alternatives are about to get hot in Georgia, industry watchers say, not only because of incentives pushing them but also because conventional energy costs are poised to rise.

The Georgia General Assembly passed a bill in February that allows Georgia Power to recover from ratepayers the costs of expanding its nuclear plant Vogtle as it's being constructed.

On the federal level, the push is on for a cap and trade system to rein in carbon dioxide emissions responsible for global warming. Putting that or any other pollution regulatory system in place will likely increase energy costs, especially in Georgia, where much of the energy is derived from coal-powered electric plants.

That means payback for solar and other alternatives will come more quickly.

"Most of the solar community is delighted with these goings on," Smith said.

He figures the break-even point on a typical solar system is five years. After that, it's gravy for the homeowner, who could stand to save an additional $10,000 over the life of the system. Most will be able to sell power back to Georgia Power several months a year when their usage is low but the sun's shining bright.

Jack Star is a local proponent of solar energy who estimates about 40 percent of local homes have enough sun exposure and roof space to go solar. The town is ripe for alternative energy, he said.

"We're living in a dynamic time," Star said. "It's very exciting."

More incentives coming

-- The Georgia General Assembly this year passed House Bill 473, which, if signed by the governor, would give grants, rather than tax credits, to businesses for alternative-energy installations.

-- A Georgia weatherization program will use stimulus money to give grants of up to $6,500 for items such as insulation, efficient lighting and weather stripping for families at 200 percent or less of the federal poverty level.

-- A rebate program for Energy Star appliances is also in the works but awaiting guidance from the federal government, said Shane Hix, of the Georgia Environmental Facilities Authority.

Celebrate Earth Day

Georgia Southern University will have its 2009 Earth Day celebration from 10 a.m.-2 p.m. Wednesday at the Russell Union Rotunda.

The event will feature music, various educational and environmental displays, activities for kids and a hands-on "Art from Found Objects" workshop.

How to learn more

For more information on available tax credits, see the Database of State Incentives for Renewable Energy (which includes a list of federal incentives) at www.dsireusa.org. Go to savannahnow.com/greenliving to learn more about saving money and the Earth.

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I called Julian Smith after reading the article and he promptly visited my home. He presents as an excellent, motivated entrepreneur -- what America needs right now. I am inviting him out to my weekend farm for an estimate on my building out there. Both he and this paper ought to work with the State of Georgia on putting up an independent site where people can keep themselves informed about the latest tax and other (utility company, third-party investor) incentives. It should include tax calculators like Kiplinger-type sites do. After all, it is a bottom-line thing as much as a green thing, right?

In addition, solar-power producers should "crowd-source" their ideas (i.e., draw on the wisdom of the crowd) through idea-generating sites like this: http://www.ideablob.com/ What we need in this area is a dramatic increase in photo-voltaic efficiency, because the numbers are daunting to say the least: For the whole world to get just half of its year 2050 power needs through solar power (everyone's favorite because it requires that nothing be burned and, if manufactured properly, produces zero pollution), we'd have to cover 1 million roofs a DAY between now and 2050. See http://www.newsweek.com/id/189293

Thus, we need to do to solar panels what Intel, AMC, etc., have done to personal computers -- double their efficiency and halve their price every year. By "crowd-sourcing" designs, we can capture the brilliance of myriad minds from around the planet focusing on solving this problem. Imagine tens of thousands of Thomas Edison's working in their labs on the same search for the filament for the first light bulb. Some 15 year old genius from a basement somewhere may just "crack the super-efficiency code" and get us solar-paneled roofs (be they fixed panels or flexible, "thin solar" -- see http://www.solarindustrymag.com/page.php?2) in the form of $995, weekend-installation kits from Home Depot/Lowes/Wal-Mart. But that genius can't do it without the same open-source architecture (and software) like we saw with the IBM-type computers (and Linux-type software) in the past. Designs need to be "de-proprietized" and shared; profits can be reserved to the most efficient solar-panel makers (analogous to what happened to IBM-type computers once they were commoditized).

And all that, in turn, will eliminate the need for government tax credits, hand-outs, etc. on which guys like Julian Smith are now feeding (I reminded him that history shows pretty much every business model that's built on government hand-outs is fatally flawed; just look at the ethanol boondoggles now littering our economic landscape). Indeed, this market will be mature and successful when I can walk into Home Depot, Wal-Mart, etc., and see millions of homeowners who’re convinced that spending $1000 now fetches them a 3-year cycle payback, then sweet gravy "power-savings profit" thereafter. That is what will get Joe Six Pack to open his wallet and do it.

And that is the sort of efficiency (and lowered price) which will obviate the need for government hand-outs. Julian Smith and his ilk shall rightly be remembered as pioneers, just as we remember the early micro-computer makers/vendors/users who brought us geometric increases in PC-based convenience and prosperity.